Powering Greater Boston’s Economy Why the Latino Community Is Critical to Our Shared Future
Powering Greater Boston’s EconomyWhy the Latino Community
Is Critical to Our Shared Future
ABOUT BOSTON INDICATORSBoston Indicators is a research center at the Boston Foundation that seeks a
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Powering Greater Boston’s EconomyWhy the Latino Community Is Critical to Our Shared Future
A Special Report from Boston Indicators and the Boston Planning and Development Agency in support of the
Latino Legacy Fund at the Boston Foundation
AuthorsAlvaro Lima, Boston Planning and Development Agency
Christina Kim, Boston Planning and Development AgencyLuc Schuster, Boston Indicators
EditorsStephen Chan, The Boston Foundation
Barbara Hindley, The Boston Foundation
DesignKate Canfield, Canfield Design
Special Thanks To:Aixa Beauchamp and Juan Carlos Morales, Co-Founders, Latino Legacy Fund
andRosalin Acosta and Zamawa Arenas, Members, Latino Legacy Fund Advisory
Committee, and Members, Boston Foundation Board of Directors
June 2017
This report, released on the occasion of a major convening about the critical role Latinos play in Greater Boston’s shared future, tells us that the face of Greater Boston is changing—and changing swiftly. Today, more than 20 percent of Boston’s population is Latino. In fact, without growth in the Latino population, Boston’s population would still be near 1980 levels. The Latino community is also keeping Boston young. Close to one-third of Boston’s children are Latino—and as Latino families drive population growth, they are making vital contributions to our culture and to the very fabric of our lives.
Latinos are also helping to power Greater Boston’s economy. Fourteen percent of the workforce in Suffolk County is made up of Latinos, up from just two percent in 1980. Increasingly, Latinos are contributing to Boston’s economy as entrepreneurs, with more than 10 percent of privately-held firms owned by Latinos. And the Latino community has a massive effect on the local economy, adding up to some $9 billion of economic activity in Suffolk County. With their significant contributions today—and how they will shape the Greater Boston of tomorrow, Latinos are an essential part of securing our region’s future success.
The Boston Foundation has a long history of supporting the Latino community. Fifty years ago, it provided critical early funding to Inquilinos Boricuas en Acción, which led to the creation of Villa Victoria. Today, more than one-third of the students coached through the college completion initiative, Success Boston, are Latino—and they are experiencing some of the most dramatic gains. Numerous other grants and the Foundation’s public policy work benefit the Latino community, as well.
In 2013, the Boston Foundation, in partnership with Latino leaders and Hispanics in Philanthropy, established the Latino Legacy Fund at the Boston Foundation, the first Latino-focused philanthropic resource in Greater Boston. The mission of the Latino Legacy Fund is to create and maintain a permanent endowment to strengthen the diverse Latino community today and in the future. The Fund’s goal is to contribute to our region’s civic vitality by supporting issues and organizations that advance the socioeconomic status of Latinos—while building and enhancing the leadership capacity of the entire Latino community. Already, the Fund has made grants totaling more than $250,000 and raised close to $1 million.
The Latino community represents our future and our future leaders—which means that when Latinos thrive, our economy and our entire region benefits. The Boston Foundation and the Latino Legacy Fund thank Alvaro Lima and Christina Kim at the Boston Planning & Development Agency for working closely with Boston Indicators to provide this fascinating picture of the contributions of the Latino community and the tremendous potential it has for contributing to a future of shared prosperity for everyone in Greater Boston.
Paul S. Grogan Aixa Beauchamp Juan Carlos MoralesPresident and CEO Co-Founder Co-FounderThe Boston Foundation Latino Legacy Fund Latino Legacy Fund
Preface
5
B
oston’s prosperity is tied to the rapidly growing Latino community,
which currently makes up 20 percent of our city’s population.
Boston’s Latino community is a source of human capital with many
opportunities for development. This report is divided into two sections:
ASSETS: Contributions of Latinos to Boston’s Population and Economy
OPPORTUNITIES: Workforce and Business Development Trends
The Assets section details the contributions Latinos have made to
Boston’s population and economy. Latino population growth accounts
for 92 percent of Boston’s population growth since 1980. Latinos make
up 24 percent of births and 31 percent of children, contributing to
Boston’s population of the future. Latinos also contribute to Boston’s
economy as 14 percent of the workers in Suffolk County and 10 percent
of the business owners in Boston.
The Opportunities section presents some challenges and areas for
growth faced by the Latino community in Boston. Obstacles to higher
education and limited English proficiency hinder Latinos from accessing
high-skilled jobs. This challenge will become increasingly acute in the
future, as an increasing share of well-paying jobs will require advanced
training, especially in STEM fields. There are tremendous opportunities
to better leverage the talents of Latinos in order to create a more
prosperous Greater Boston for everyone.
Note: For the purposes of this report, we define “Latino” using data from
the U.S. Census Bureau, including people who meet any of the following
criteria:
• Self-described ethnicity of “Hispanic or Latino,” which is defined as a
person of Cuban, Mexican, Puerto Rican, South or Central American,
or other Spanish culture regardless of race
• Place of birth in Brazil
• Self-described ancestry of Brazilian
Overview
6
Today, there are about 850,000 Latinos in Massachusetts, compris-
ing 12 percent of the state population. While nationally Latinos are
predominately Mexican, in Massachusetts the largest group of Latinos is
Puerto Rican (42 percent). After World War II, Puerto Rican migration to
Massachusetts began in the Connecticut River Valley towns of Springfield
and Holyoke before moving into the cities of Eastern Massachusetts.
Currently Latinos are concentrated in Boston and the state’s Gateway
Cities. The cities and towns with the highest concentrations of Latinos
are Lawrence (77 percent of the city population), Chelsea (66 percent),
Holyoke (50 percent), Springfield (42 percent) and Lynn (36 percent).
While Boston’s Latino share is smaller than some other Massachusetts
towns—at 20 percent—Boston has the largest total number of Latino
residents at just over 130,000. Latinos in Boston make up 16 percent of
all Latinos in the state. The largest Latino groups in Boston are Puerto
Rican (28 percent of Latinos), Dominican (24 percent), Salvadoran
(11 percent), Colombian (6 percent) and Mexican (6 percent). Interna-
tional immigration accounts for a large share of the growth in the
Latino population. Almost half of Latinos in Boston are foreign born (43
percent). Puerto Ricans have U.S. citizenship at birth and are native born.
Source: U.S. Census Bureau, 2011-2015 American Community Survey, BPDA Division Analysis American Factfinder Tables: B03003 and B05006 for FB born-Brazil Combined.
Percentage Latino or Hispanic by County Subdivision
Latinos in Massachusetts
and in Boston
0% - 4.1%
4.2% - 10.3%
10.4% - 20.4%
20.5% - 42.3%
42.4% - 76.5%
0 30 6015 Miles
County SubdivisionsPercentage Latino or Hispanic
7
1980
Total Hispanic/LatinoBoston's Population without Latinos
1990 2000 2010 2015
526,735510,840 500,582 506,667
535,163
36,259 63,44388,559
110,927
134,432
562,994 574,283589,141
617,594
669,595
Source: U.S. Census Bureau, 1980-2000 Decennial Census, IPUMS, 2010 & 2015 1-year American Community Survey, PUMS, BPDA Research Division Analysis.
Population of Boston
Latinos led Boston’s growth from 1980, and now make up 20% of the city.
Over the last several decades, Boston has boomed. Our population
has grown and the economy has expanded. But this is actually a recent
trend. Boston’s population declined sharply between 1950 and 1980 and
this population decline coincided with a slowing of the local economy.
Fortunately, the city has rebounded in recent decades, thanks in large
part to growth in our Latino population. From 1980 to 2000 Boston’s
Latino population grew by almost 2.5 times while the non-Latino
population continued to shrink. The non-Latino population has begun
to grow since 2000, but Latino population growth still accounts for 92
percent of Boston’s total growth over the 25 years from 1980 to 2015.
Without Latinos, Boston’s population would still be near 1980 levels.
ASSETS: Population Growth
Without Latinos, Boston’s population would still be near 1980 levels.
8
107,286
89,712 88,041
71,99676,281
14,438
20,121 28,518
31,71435,047
121,683
109,833116,559
103,710111,328
1990 2000 2010 20151980
Latino population ages 0-17 Population ages 0-17 without Latinos
Source: Boston Public Health Commission & U.S. Census Bureau, 1980-200 Decennial Census, IPUMS, 2010 & 2015 1-year American Community Survey, PUMS, BPDA Research Division Analysis.
Boston’s Child Population, Ages 17 and Under
Declining population threatens our ability to expand the economy and
strengthen our civic institutions over the long term. In order to thrive we
need entrepreneurs coming up with new ideas, creating new businesses
and starting new community organizations. And we need enough skilled
workers to meet growing employer demand.
Boston’s population decline since 1950 hit the population of children
particularly hard. Even with the upswing in overall population since 1980,
there are still fewer total children aged 17 or younger in Boston than
there were in 1980. However, between 1980 and 2000 growth in Latino
children increased rapidly, with the number of Latino children roughly
doubling in only 20 years. Over this same timeframe, the Boston non-
Latino child population declined by one-third. Without growth in the
number of Latino children, Boston’s child population would have declined
dramatically.
In 2015, Latinos made up 31 percent of children in Boston, despite being
just 20 percent of the city’s population. Additionally, 24 percent of births
in Boston are to Latina mothers. The Latino population will grow into the
future, continuing to support the growth of Boston as a city. These Latino
children will be the citizens and workers of Boston’s future.
ASSETS: Future Growth
Latinos are also key to
Boston’s future
population. Without Latinos,
Boston’s child population
would have declined
dramatically.
9
Note: Due to data limitations, “Hispanic/Latino” in this graph does not include Brazilians who are included with Latinos in other analyses in this report.Source: 1970 -2010 U.S. Decennial Census, 2009-2013 American Community Survey, BPDA Research Division Analysis
Boston’s Population by Race & Ethnicity
A core reason why cities are such dynamic places to live and work is
their diversity. At their best, cities bring people of different experiences
and perspectives close together, generating new ideas and finding
creative solutions to difficult problems.
For a long time, Boston had been a strikingly white city; back in 1970,
eight in ten residents were white. But it’s not just the Latino population
that grew over the years since then. Growth in our Latino population
coincided with growth among other racial and ethnic groups—much of
it from new immigration—helping enrich our city with greater diversity.
Combined growth in the Hispanic, Asian/Pacific Islander and Black
populations helped lead to Boston becoming a majority non-White city
for the first time in the 2000 Census.
Latinos and Asian/Pacific Islanders grew most over this 45 year time-
frame, with Latinos growing from 3 percent of the city’s population
to 20 percent and Asian/Pacific Islanders growing from 1.3 percent to
9.5 percent. That’s growth of more than 600 percent for each of
these two groups.
ASSETS: Increasing Diversity
Growth in our Latino population coincided with growth among other racial and ethnic groups.
1980
2000
2010
2015
80%1970
68%
59%
49%
47%
45%
16%
22%
24%
24%
22%
23%
6%
11%
14%
17%
20%
3%
3%
5%8%
9%
5%
4%
4%
1990
OtherAsian / Pacific IslanderHispanicBlack / African AmericanWhite
9%
10
Related to growth in the overall Latino population, Latinos now
represent 14 percent of the workforce in Suffolk County. (Due to data
limitations, this analysis uses Suffolk County, rather than Boston, as the
place of work. Boston makes up the vast majority of Suffolk County,
which also includes Chelsea, Revere and Winthrop.)
This growth is striking, since back in 1980 Latinos only made up 2
percent of the workforce in Suffolk County. And the rate of growth in
more recent years continues to be rapid. Latinos in the workforce grew
over 60 percent in just 5 years from 2010 to 2015 (from 60,000 to
97,000).
ASSETS: Latino Workers
Latinos are a growing
share of Boston’s
workforce.
Su�olk County # of Latino workersSu�olk County # of workers without Latinos
1990 2000 2010 2015
447,360
508,395 503,134519,007
591,685
10,423
27,701 41,13660,132
97,223
457,783
536,096 544,270
579,139
688,908
1990
Note: Due to data limitations, this analysis uses Suffolk County rather than Boston as the place of work. Source: U.S. Census Bureau, 1990 – 2010 Decennial Census, 2015 1-year American Community Survey, IPUMS, BPDA Research Division Analysis
People Working in Suffolk County
Latinos make up 14% of the workers in Suffolk County.
11
Helping spur new growth and innovation, Latinos increasingly contribute
to Boston’s economy as business owners and entrepreneurs. The share
of privately-held firms owned by Latinos grew 60 percent from 2007
to 2012 (from 7.8 percent to 10.4 percent). And the number of paid
employees of Latino-owned firms increased 115 percent over the same
time period (from 1,568 to 3,364).
Latino-owned businesses, however, remain small compared to all
privately-owned firms in Boston. Latino-owned businesses average less
than $100,000 in annual sales, compared to $644,000 in annual sales for
all privately-owned firms. Further, 91 percent of Latino-owned firms have
no paid employees compared to 79 percent of all privately-owned firms.
Latino firms with employees average six total employees compared to 12
employees for all privately-owned firms.
ASSETS: Entrepreneurship
Latinos are increasingly contributing to Boston’s economy as business owners and entrepreneurs.
Paid employees
Annual sales
Number of firms
20122007
7.8%
10.4%
.9%
1.5%
1.0%
2.3%
Source: U.S. Census Bureau, 2007 & 2012 Surveys of Business Owners, BPDA Research Division Analysis.
Latino Share of Privately-Owned Firms in Boston
12
Economic output of LatinosEconomic output without Latinos
1990 2000 2010 2014
$36.9
$56.3
$83.0
$87.7
$96.4
$0.9
$2.6
$4.5
$6.8
$8.9
$37.8
$53.8
$87.5
$94.5
$105.4
1980
Latino workers hold jobs in Boston and Latino entrepreneurs own
businesses that employ additional workers. Altogether these jobs in
turn help support more jobs in the region, either through supplier
relationships with local companies, or through Latino spending on local
goods and services. The growing contributions of Latino workers and
entrepreneurs is an important part of how Boston turned a corner,
reversing our economic slowdown and revitalizing the urban core.
In 2014, the direct and indirect cumulative effect of Latinos accounted
for roughly $9 billion in Gross Domestic Product, about 7 percent of
Suffolk County’s total economic activity. This is up significantly from
1980 when economic output associated with Boston’s much smaller
Latino population was less than $1 billion.
ASSETS: Economic Output
Latinos boost our local
economy as workers and
entrepreneurs.
Source: U.S. Census Bureau, 1980-2000 Decennial Censuses, 2010 & 2010-2014 American Community Survey, IPUMS; 1992, 2002, 2007, & 2012 Surveys of Business Owners; Regional Economic Model, Inc., REMI calculations, BPDA Research Division Analysis
Economic Output in Suffolk County, 1980-2014Billions of dollars, inflation adjusted, 2015
Bachelor's degree or higher
Associate's degreeSome college coursework or
post-secondary certificate
High School or equivalent
Less than high school
7%
Replacement openings
Growth openings
12%
21%
29%
15%13%
11%9%
46%
37%
13
With our region’s longstanding backbone of world-renowned colleges
and universities, Boston has been a hub of high-skill jobs for most of
its history. As the national economy has shifted toward higher-skilled
employment in recent years, the need for higher education in order
to succeed in Boston has continued apace. By 2022, almost half of
projected job openings from new growth (46 percent) will require a
Bachelor’s degree or higher. And seven in ten job openings (71 percent)
will require at least some college coursework or a post-secondary
certificate.
Many of our projected replacement openings will also require some
college coursework (59 percent), but these replacement openings are
less likely to require higher education than openings from new growth.
Because so many people in our region have college degrees—
58 percent of people in Suffolk County have a Bachelor’s degree or
higher—even some jobs that do not require a college degree may be
filled by someone with a college degree. This dynamic makes it all the
more difficult for people without post-secondary education to find
employment in Boston.
OPPORTUNITY: Skilled Workers
Almost half of new job openings will require a college degree.
Source: U.S. Census Bureau, 2000 Decennial Census & 2015 American Community Survey, IPUMS; Occupation and Employment Statistics; O*NET Database; BPDA Research Division Analysis
Projected Job Openings in Boston by Education, 2012-2022
14
While it’s hard to predict future labor market changes, the state’s
Executive Office of Labor and Workforce Development does provide
rough occupation growth projections out to 2024 (summarized below).
Many, although not all, of the areas with the greatest growth will likely
be in high-wage jobs. Management and computer occupations are
projected to grow by over 10 percent each and wages in these fields are
above $90,000 a year. Food preparation and personal care occupations,
which provide entry-level jobs for many new immigrants, are also
projected to grow significantly, but pay wages in the range of just
$30,000 a year.
Unlike in other parts of the country where much of the job growth is
in low-skill, low-wage occupations, Boston is fortunate to have many
thriving industries that pay good wages. But the prevalence of these
good jobs brings with it a serious challenge; workers without the
required higher-level skills risk getting shut out.
OPPORTUNITY: Occupation Growth
Most of the occupations
projected to see the
largest growth are in high-wage fields.
Occupation Group Employment 2014
Employment 2024 Change Growth from
2014Average
Wage (2016)
Business and Financial Operations 56,741 63,150 6,409 11.3% $91,762
Healthcare Practitioners and Technical 41,264 47,617 6,353 15.4% $100,786
Food Preparation and Serving 45,454 49,530 4,076 9.0% $31,011
Management 44,485 48,243 3,758 8.4% $137,778
Computer and Mathematical 20,527 23,916 3,389 16.5% $94,493
Healthcare Support 13,737 16,435 2,698 19.6% $36,070
Personal Care and Service 11,086 13,088 2,002 18.1% $30,066
Sales and Related 37,372 38,999 1,627 4.4% $58,184
Office and Administrative Support 61,851 63,428 1,577 2.5% $49,498
Education, Training and Library 9,549 10,869 1,320 13.8% $73,362
Community and Social Service 9,537 10,709 1,172 12.3% $44,170
Building and Grounds Cleaning and Maintenance 14,331 15,300 969 6.8% $34,860
Transportation and Material Moving 6,328 6,946 618 9.8% $31,808
Life, Physical and Social Science 5,496 6,113 617 11.2% $68,024
Construction and Extraction 4,262 4,694 432 10.1% $72,147
Legal 15,817 16,162 345 2.2% $160,922
Protective Service 13,635 13,930 295 2.2% $43,110
Installation, Maintenance and Repair 3,874 4,106 232 6.0% $47,196
Arts, Design, Entertainment, Sports and Media 2,718 2,897 179 6.6% $71,917
Architecture and Engineering 1,548 1,599 51 3.3% $98,056
Source: Executive Office of Labor and Workforce Development Long-Term Occupational Projections
15
Science, technology, engineering and mathematics (STEM) occupations
have become an important part of our regional economy, and they
are among the occupations that the Executive Office of Labor and
Workforce Development projects will grow fastest over the coming
years. The table below highlights selected STEM occupations that the
are projected to grow by more than 6 percent by 2024.
Job growth in just these selected occupations adds up to thousands
of net new openings. The top three categories of software developers
and computer systems analysts together are projected to grow by more
than 13,000 jobs, and average wages in each of these occupations are
all above $93,000 a year.
If Latinos are not able to access higher education, they may be excluded
from these occupations. Similarly, if Boston is not able to further develop
its STEM talent pipeline, Boston companies may face difficulty filling
these jobs.
OPPORTUNITY:STEM Job Growth
Science, technology, engineering and math (STEM) occupations are among Boston’s fastest growing.
Occupation Employment 2014
Employment 2024 Change
Growth from 2014
EducationAverage
Wage (2016)
Computer Systems Analysts 4,445 5,254 809 18.2%Bachelor's
degree$95,813
Software Developers, Applications 4,880 5,657 777 15.9%Bachelor's
degree$108,115
Software Developers, Systems Software 3,432 3,958 526 15.3%Bachelor's
degree$111,887
Computer User Support Specialists 3,133 3,534 401 12.8%Some
college$64,053
Medical Scientists 3,151 3,518 367 11.6%Doctoral or professional
$81,425
Web Developers 1,344 1,681 337 25.1%Associate's
degree$80,414
Operations Research Analysts 974 1,285 311 31.9%Bachelor's
degree$75,444
Biological Technicians 2,345 2,595 250 10.7%Bachelor's
degree$50,016
Network and Computer Systems Admin 2,319 2,547 228 9.8%Bachelor's
degree$94,844
Civil Engineers 1,548 1,599 51 3.3%Bachelor's
degree$98,056
Source: Executive Office of Labor and Workforce Development Long-Term Occupational Projections; U.S. Census Bureau,
2011-2015 American Community Survey, PUMS, BRDA Research Division Analysis
16
Since they are less likely to have a college degree, many Latinos are
not well-prepared to take advantage of these job openings in high-skill
areas. As shown in the graph below, only 19 percent of working-age
Latinos have a Bachelor’s degree or higher compared to 50 percent
of non-Latinos. At the other end of the spectrum, over 60 percent of
Latinos have only a high school degree or less.
OPPORTUNITY: Education
Increase the education
and English proficiency
of Latinos in order to fully realize their
potential.
One key barrier for Latino advancement through higher education and
into high-wage occupations is a lack of English proficiency. As was noted
earlier, 43 percent of Latinos are foreign born, with the vast majority
of these newcomers having grown up speaking other languages, most
often Spanish or Portuguese.
In Boston, 25 percent of Latinos are not proficient in English (speaking
English either “Not well” or “Not at all”). By contrast, only 6 percent of
non-Latinos are not proficient in English. As we continue transitioning
into a knowledge economy where communication skills are paramount, it
will be critical to build more supports for improving the English language
skills of all lower-skill workers, including Latinos.
Bachelor's or higher
Some collegeHigh school or equivalence
Less than high school
Non-Latinos
Latinos 33% 28% 20% 19%
12% 20% 18% 50%
Educational Attainment of Working-Age Adults by Ethnicity (Bostonians, aged 25 or older)
English Proficiency by Ethnicity
Not at allNot wellWellOnly English or Very Well
Non-Latinos
Latinos 59% 16% 17% 8%
5%
4%
89%
Sources: U.S. Census Bureau, 2011-2015 American Community Survey, BPDA Research Division Analysis
17
With nearly half of all new jobs in our local economy likely to require
a college degree or more, Latino workers without a college education
face real barriers to employment. Currently, Latinos in Boston are
overrepresented in low-paid occupations such as building and grounds
maintenance and food preparation. Latinos make up 33 percent of food
preparation jobs, for instance, but median wages in these occupations
are only $31,000 a year for full-time work. Other occupations, like those
in business and finance, pay median wages of roughly $92,000 a year.
But Latinos comprise only 5 percent of these occupations.
There is also a range of jobs earning different wages within each
occupation, and Latinos are concentrated within the lower-wage ones;
for most occupation categories, the Latino share of wages is smaller
than the Latino share of employment.
OPPORTUNITY: High-Wage Occupations
Increase Latino representation in highly paid occupations.
Source: U.S. Census Bureau, 2011-2015 American Community Survey for employment; Massachusetts Executive Office of Labor and Workforce Development (EOLWD) 2016 for average wages, BPDA Research Division Analysis.
Latino Share of Employment vs. Share of Wages, by OccupationAverage wage of full-time workers in parentheses
Legal ($161,000)
Business & Financial Operations ($92,000)
Architecture and Engineering ($98,000)
Life, Physical & Social Science ($68,000)
Computer & Mathematical ($94,000)
Management ($138,000)
Health Care Practitioners & Technical ($101,000)
Education, Training & Library ($73,000)
Community & Social Service ($44,000)
Arts, Design, Sports, & Media ($72,000)
Protective Service ($43,000)
Sales ($58,000)
O�ce & Administrative Support ($49,000)
Health Care Support ($36,000)
Installation, Maintenance, & Repair ($47,000)
Construction & Extraction ($72,000)
Personal Care & Service ($30,000)
Transportation & Material Moving ($32,000)
Food Preparation & Serving ($31,000)
Building & Grounds Maintenance ($35,000)
Latino share of wages
Latino share of employment
17% Latino Boston resident share of all occupations
18
In addition to being underrepresented in Boston’s more highly paid
occupations, Latinos are also underrepresented in Boston’s more highly
paid industries. Whereas “occupation” captures the type of job an
individual holds (e.g. an accountant), “industry” captures a whole field of
work that includes people working in many different occupations (e.g.
retail trade).
Within industries, Latinos make up 17 percent of employment overall,
but only make up 8 percent of employment in high-wage industries like
finance and insurance (with median wages of $71,000 a year). On the
other end of the spectrum, Latinos make up 32 percent of employment
in accommodation and food services, but median wages in this industry
are only $27,000 a year.
And similar to the story within occupations, there is a range of jobs
within each industry category, each of which earns different wages. As
shown in the graph below, for each industry group, the Latino share of
wages is lower than the Latino share of employment, suggesting that
Latinos are concentrated in the lower-wage jobs within each industry.
OPPORTUNITY: High-Wage Industries
Latinos are also under-
represented within Boston’s
more highly paid industries.
Source: U.S. Census Bureau, 2011-2015 American Community Survey, BPDA Research Division Analysis
Latino Share of Employment vs. Share of Wages, by IndustryMedian wage of full-time workers in parentheses
Latino share of wages
Latino share of employment
Professional, Scientific, and Technical Services ($70,000)
Finance and Insurance ($71,000)
Information ($62,000)
Educational Services ($52,000)
Arts, Entertainment, and Recreation ($37,000)
Public Administration ($62,000)
Health Care and Social Assistance ($44,000)
Transportation & Warehousing ($38,000)
Manufacturing ($51,000)
Other ($42,000)
Real Estate and Rental and Leasing ($54,000)
Construction ($40,000)
Retail Trade ($34,000)
Accommodation and Food Services ($27,000)
Administrative and Waste Management Services ($33,000)
3.9%
6.7%
4.3%
8.3%
17% Latino Boston resident share of all industries
Share of sales by Lantino-owned firms
Latino-owned firms
Share of employees in Latino-owned firms
Real Estate and Rental and Leasing
Finance and Insurance
Manufacturing
Professional, Scientific, and Technical Services
Wholesale Trade
Information
Arts, Entertainment, and Recreation
Transportation and Warehousing
Educational Services
Construction
Accommodation and Food Services
Retail Trade
Other Services
Health Care and Social Assistance
Administrative and Support and WasteManagement and Remediation Services
5% 10% 15% 20% 25% 30%
Latino-owned firms face difficulties in growing their businesses and
accessing higher value industries. Within almost every industry, Latino-
owned firms employ a disproportionately low share of that industry’s
total employees. Latino-owned firms, for instance, make up 23 percent
of the privately-held firms in health care and social assistance, but
they employ only 4 percent of the employees. This is also true when
comparing the share of Latino-owned firms with their share of total sales
within that industry. In retail, for instance, Latino-owned firms make up
14 percent of the industry, but only 3 percent of total sales.
19
OPPORTUNITY: Business Development
Increase representation of Latino-owned firms in high-value industries and promote their growth.
Latino Share of Firms, Employees and Sales in Boston by Industry
Source: U.S. Census Bureau, 2011-2015 American Community Survey, BPDA Research Division Analysis
10.4% Latino share of privately-owned firms
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Boston is blessed with a strong and increasing supply of
Latino talent. Growth in the Latino population has helped us
fend off what would otherwise have been stagnant population
growth during the past 35 years. And now on the aggregate
level our local economy is quite strong. Overall unemployment
is relatively low, currently at 3.9 percent (April 2017), and
there is growing demand from employers, especially those in
burgeoning, high-wage fields, such as science, technology,
engineering and math (STEM). This increasing demand
presents a real opportunity because these fields offer good
jobs with higher than average wages.
But high-skill, high-wage jobs bring with them an important
challenge: Workers without the required high-level skills risk
getting shut out entirely. In order to grow our economy so that
we all can thrive, we need to do a better job of building the
talent pipeline so that the supply of workers, including those
within the Latino population, have the skills necessary to meet
the demands of our 21st century workforce.
As this report shows, Boston’s diverse and growing Latino
community already is making tremendous contributions to
this region’s cultural and economic life, but its potential is even
greater—and essential to our shared future prosperity. Since
Latino children represent such a large percentage of our city’s
young people, it’s no exaggeration to say that our city’s future
vitality depends on tapping the wellspring of human capital
within the Latino community. When Latinos thrive, we all
thrive.